iGaming Business Optimisation via AI Algorithms

The industry was the first to introduce innovation and technological advances. They make the niche safer, more customer-oriented, and more profitable.

About the Term

The solution can be explained as a set of systems that can imitate the human mind and behaviour. AI programs are capable of self-learning, adequate assessment of the situation, and informed decision-making based on previous experience.

Analysts from Grand View Research estimate the global AI market at $62.35 billion and expect that by 2028, its volume will reach $930 billion. The reason for such rapid growth is the fact that today, neural networks and machine learning technologies are already indispensable in many leading sectors of the economy.

AI is used in:

• finance;
• insurance;
• healthcare;
• cargo transportation;
• the oil sector;
• the casino niche.

Paolo Personeni, a managing director at Sportradar, commented:

Over the past 5 years, the gambling industry has undergone sweeping changes. AI has played a decisive role in digital transformation.

Brief Account

The use of the technology began 20 years ago when the IBM Deep Blue computer defeated Garry Kasparov, a famous grandmaster.

In 2016, the Google AlphaGo robot beat the 18-time world champion, Lee Sedol, in Go (Korean national entertainment), and a year later, the Libratus AI program defeated the best poker players.

All these are examples of the successful use of artificial intelligence in the iGaming field.

AI Can Reduce the Risks

Its introduction improves casino security and helps business owners work within the legal framework and adhere to the most important operation principles.

Improved Responsible Gaming Features

Players can independently set the size of deposits, as well as the limits on losses and sessions, on their profile pages. The threshold value may also be provided by local regulators to protect users from ludomania. In Spain, for example, entrepreneurs are required to block those clients whose losses exceed €600 within 3 weeks.

Tasks performed by AI programs:

• scanning of data points on the placed bets;
• verification of how close customers are to previously set limits.

The system automatically informs players and operators about emerging risks and also offers some options that are aimed at minimising emissions from gambling:

• small reminders and messages;
• mechanisms for restricting the number of hours spent in an online casino;
• daily cash limits;
• a temporary blocking of the account.

The neural network identifies potentially problematic users and effectively interacts with them, preventing the development of gambling addiction. Thanks to this, people can enjoy their favourite games, and the brands maintain their positive image.

At the beginning of 2022, the European provider, Playtech, created the BetBuddy system. The solution is based on AI.

The main functions of the proprietary software:

• capture of the digital footprints of players;
• improvement of the UX experience;
• identification of users with a high risk of ludomania.

Playtech uses a comprehensive approach to identify and manage behavioural patterns associated with gambling addiction.

Increased Security of Digital Casino Platforms

According to the 1 Stop Translation Internet newspaper, 77% of all DDoS attacks in 2022 were aimed at gaming sites and financial institutions. For this reason, entrepreneurs are looking for effective defence mechanisms, including programs based on AI.

Key features of such systems:

Fraud detection

The software can monitor each user 24/7, creating structured data sets.

The information is used to simulate the actions of individual clients or groups of players to identify behavioural anomalies. They may indicate account hacking, theft of bonuses, or the use of bots to gain an advantage over other participants.

AI instantly detects any attempts of fraud and builds a secure online casino environment.

Protection against DDoS attacks

To create a secure gambling space, human control is no longer required since AI takes care of everything.

The solution recognises and blocks attempts to hack the system, DDoS attacks, phishing, Trojan incursions, and utilities.

AI can study and remember the experience of competitors in the fight against hackers. If a new type of attack appears on the Web, the online casino will be ready for it.

Fight against money laundering

The technology is often built into the risk management module. The solution helps gaming sites better comply with AML and FATF policies.

The AI program scans all intermediate and end points of transfers for AML risks, analyses the history of transactions, and evaluates the credit level of B2B partners.

Accelerated verification

Thanks to AI, virtual casinos can instantly identify their clients. Players do not need to enter additional information or upload any documents.

Verification is carried out thanks to geodata and biometric technologies (fingerprints and retinal scanning).

Data protection

AI helps developers to create virtual private networks (VPNs). They are responsible for storing user content thanks to a private encrypted connection between the gambling establishment and its customers.

AI for Effective Information Management

The program collects and processes terabytes of data, giving operators access to accurate and detailed analytics for any request. The computer vision option increased the usefulness of the data, helped to qualitatively structure the information, and get the most out of it.

Lloyd Danzig, the founder and managing partner at Sharp Alpha Advisors, said:

The whole industry depends on the use of data collected through AI algorithms. Such information is needed to predict future results of the sessions and behaviour of users, as well as to correctly profile players and optimise reward programs.

AI performs the following functions on gaming sites:

1. Effective promotion. The special module studies consumer sentiment in the niche (requested types of games, popular marketing channels, and in-demand bonuses). Ready-made data can be used to create a purchase plan (content from specific manufacturers) that will be of interest to the audience and bring maximum benefits in the form of increased Internet traffic.
2. Prediction of the behaviour of casino visitors. Modern platforms that use AI can anticipate the actions of gamblers. It is also possible to predict the customer lifetime value of each participant and optimise the cost of marketing services.
3. Improvement of the retention indicator. The AI system determines at what point the player is ready to leave the website and offers him a profitable bonus or a personal promo code. The program works ahead of the curve: it predicts changes in the behaviour of users and corrects the actions of online casinos. Visitors stay on the resource longer and turn into regular customers.
4. Wide coverage of the younger audience. Artificial intelligence helps to make projects attractive to millennials. Experts predict that the average age of gamblers will soon decrease: from 35–65 to 20–35 years.

AI Can Improve User Experience

The neural network and machine learning technologies make the quality of the provided services much higher, which is especially valuable in the competitive iGaming market.

According to a recent Oracle Corporation survey, 78% of entrepreneurs have already implemented such solutions or are planning to do so. The purpose of these changes is to improve customer service.

Key features of AI:

The Main Things about the Use of AI in the iGaming Industry

The technology can be quite useful for the virtual casino niche.

1. It is an indispensable component of the security of gambling platforms. The solution can detect and block fraud with accounts, bonuses, or access levels, protect against DDoS attacks, speed up user verification, and store confidential data.
2. Artificial intelligence improves the functions of responsible gambling and helps to identify and block customers with signs of ludomania.
3. AI is an important part of effective data management. Its implementation will facilitate the promotion of digital casinos in a highly competitive market, help predict the behaviour of players, and attract the generation of millennials to the gaming sites.
4. The program is aimed at improving user experience. Among the main functions of AI, we can name round-the-clock support, expenditure control, and the creation of innovative content based on the preferences of casino visitors.

It is possible to order innovative solutions for your iGaming business from 2WinPower. We offer:

• turnkey websites;
• White Label platforms;
• Bitcoin casinos;
• games with VR and AR elements;
• AI-based CRM systems;
• payment aggregators, etc.

The 2WinPower studio also provides such services as licensing, drafting a business plan, promotion, and creation of unique HTML5 slots.